State-level Space Policies in India: New Frontiers in Federal Space Governance

As India continues to solidify its position in the global space ecosystem, the emergence of State-level space policies marks a new chapter in decentralized space development. Among the pioneers in this realm are the States of Gujarat and Tamil Nadu. Each has taken bold strides to establish itself as a leader in space industry development, crafting unique policy frameworks tailored to their regional strengths and ambitions.

Gujarat

Gujarat’s space journey is deeply intertwined with the legacy of ISRO’s Space Applications Centre (SAC) in Ahmedabad. Building on this legacy, Gujarat introduced the SpaceTech Policy 2025–30—an ambitious plan aimed at positioning the State as a leading global center for space technology innovation and advancement.

At its core, the policy envisions a thriving ecosystem built on collaboration between government, private enterprises, and academic institutions. The plan is to drive Gujarat’s space economy forward through focused support in manufacturing, research, ground infrastructure, and human capital.

A unique feature of Gujarat’s approach is its alignment with its broader Electronics and IT/ITeS policies, ensuring integrated support mechanisms for companies and startups across multiple verticals. The State offers a wide array of incentives including:

This comprehensive and future-focused policy aims to boost Gujarat’s contribution to the national space economy, positioning it as a key partner in India’s space ambitions.

Tamil Nadu

Further south, Tamil Nadu has unveiled the Tamil Nadu Space Industrial Policy 2025, which reflects the State's holistic and infrastructure-oriented approach to space industrialization. Building on its established strengths in electronics, heavy engineering, and skilled manpower, Tamil Nadu is positioning itself as a top destination for global Original Equipment Manufacturers (OEMs) and high-tech startups in the space sector.

What stands out in Tamil Nadu’s policy is its commitment to enabling space innovation from both ends—industrial manufacturing and grassroots innovation. The policy is not just about capital investments but about nurturing a complete ecosystem. Some of its cornerstone elements include:

Tamil Nadu also boasts strong institutional proximity to key ISRO centers like SDSC Sriharikota and IPRC Mahendragiri, reinforcing its strategic position in the national space framework. Startups like Agnikul Cosmos and GalaxEye stand testament to the dynamism that Tamil Nadu hopes to channel through this policy.

As Gujarat and Tamil Nadu step into the spotlight with their own space policies, it's worth pausing to examine what this really means for India’s broader space strategy. On the surface, both State policies share common goals—attracting investment, boosting local manufacturing, supporting innovation, and building infrastructure. But beneath those shared ambitions, their approaches—and underlying assumptions—differ in meaningful ways.

What Gujarat and Tamil Nadu Have in Common

To begin with, both States clearly understand that space is no longer just about rockets and satellites. It’s about economics, infrastructure, innovation, and people. Each policy outlines strong financial and non-financial incentives, a focus on attracting global OEMs and domestic startups, and a desire to anchor major parts of the space supply chain within their borders.

They both:

- Acknowledge the potential of the space economy to drive regional growth.

- Establish single-window mechanisms for facilitating clearances, licences and approvals.

- Focus on skill development and collaboration with academia for human resource training.

- Build infrastructure—like launchpads, industrial parks, and testing centers—to reduce barriers for private and public actors alike.

This signals something powerful: that space is no longer just a national priority. It’s a federal one. The future of Indian space policy will likely be a mosaic—each State contributing based on its own strengths.

Where the Paths Diverge

Yet, while their goals may converge, Gujarat and Tamil Nadu’s strategies diverge in tone and emphasis.

How Do They Compare to the Indian Space Policy 2023?

The Indian Space Policy 2023 laid the groundwork for this decentralization. For the first time, it formally recognized private sector participation as a pillar of national strategy. It empowered bodies like IN-SPACe to license and authorize private missions, opening the floodgates for investment, experimentation, and commercialization.

Where the national policy lays out the vision, Gujarat and Tamil Nadu are already putting it into action. They are setting up the factories, training programs, startup hubs, and support systems that give that central policy real shape on the ground. While the Indian Space Policy 2023 shows what needs to be done, the State policies show how they’re starting to do it.

This move toward State-led policy experimentation is not just about economic development. It marks the beginning of a more agile, adaptive, and competitive Indian space sector. If managed well, it could mean faster innovation cycles, more diverse participation, and ultimately, a more resilient national space program.

But it also brings questions. As more States develop space policies, how will coordination be ensured? Will there be a race to the bottom with overlapping incentives and fragmented regulation? Or will India find a way to balance central standards with local ambition, creating a harmonized legal ecosystem?

These are not abstract questions. They will define how India navigates its next great leap—from a spacefaring nation to a spacefaring economy.

The policies introduced by Gujarat and Tamil Nadu mark a significant evolution in India’s approach to space governance. Their frameworks reflect a growing realization that the future of space exploration and commercialization in India cannot be centralized alone. Regional ecosystems, supported by targeted incentives, specialized infrastructure, and a focus on human capital development, are now critical to sustaining long-term growth.

These State-level policies demonstrate an encouraging alignment with the broader objectives laid out in the Indian Space Policy 2023, especially in terms of promoting private sector engagement and building self-reliant industrial capacity. However, the real challenge lies in ensuring coherence—between State initiatives, national regulations, and emerging global norms.

As more States consider entering the domain of space policy, there is a pressing need for a harmonized legal and regulatory environment that avoids fragmentation, encourages collaboration, and ensures a unified national approach to global competitiveness. The initiatives by Gujarat and Tamil Nadu, while distinct, collectively offer a promising blueprint for other regions to emulate, adapt, and refine.

About the authors: Vikrant Rana is the Managing Partner of SS Rana & Co. Shantam Sharma is an Associate at the firm.

Nakshatra Gujrati, Intern at S.S. Rana & Co, assisted with research on the article.

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